Reviewing Home Insurance Coverage at Renewal

Coverages on home insurance policies should be reviewed every time the policy comes up for renewal. Reasons for this include the increased value of the home due to upgrades, the contents of the home can change over time and additional coverages may need to be purchased. In the event a loss such as damage or theft those that review their policies annually are better prepared than those that don’t review their policies at all.

Home insurance coverage should be reviewed whenever upgrades or additions are made to the structure or property. Adding an addition to an existing house is gong to change the insurable value of the home. As a result the replacement cost coverage on the policy will need to be increased. If not, the value listed on the the original policy is what will be used in the event of a loss. Coverages should also be reviewed whenever upgrades are made. These can include the replacement of windows and any remodeling projects.

The coverage for the contents of a home also need to be reviewed when it is time to renew the insurance policy. The coverage for contents is calculated when the policy is initially issued. It is important to remember that people always seem to accumulate a lot of stuff and some of it might be somewhat expensive. This means that any new contents such as furniture, electronics and appliances need to be included on the policy. It is important to remember for homeowners to take an inventory of the items they have when reviewing their home insurance coverages.

Coverages for the contents of a home are not all inclusive. Valuables such as computers, jewelry and coin collections are going to require additional coverage on the home policy. These are generally items that are scheduled or rather they are itemized on the policy. These types of valuables always have a specific amount of coverage indicated per item. Also, depending on where the home is located there are additional coverages such as flood and earthquake may need to be purchased. If a home is located near an old mine a coverage called mine subsidence is also available.

Those that annually review their home insurance coverages are more prepared for a loss than those that don’t. That being said, individuals that don’t make many changes or purchase expensive valuables may not need to review their policy every time is renews. However, people will be surprised to learn how much they actually have in their home after doing an inventory of their home’s contents.